Achieving Confidentiality & Privacy

Privacy vs. Confidentiality

Many individuals use the terms privacy and confidentiality interchangeably, feeling they mean the same thing. It might seem logical, for example, to associate having access to private information the same as having access to confidential information. However, there are important differences between the two. Privacy refers to being free from observation or disturbance by others. Confidentiality, on the other hand, involves a relationship of trust where someone is entrusted with others' secrets or private affairs. The distinction between these two is important when exchanging sensitive data. Privacy, relating to our definition, refers to the individuals sending and receiving sensitive data where confidentiality refers to the contents of the sensitive data being sent. Differentiating between the two and then in turn, combining them, provides the key to unlocking an extremely powerful tool, one that will solve issues across a multitude of industries and be utilized by millions of Web 3 users. 

Confidential Data

Confidential Data is already being widely used across almost every aspect of industry and business in the form of data encryption. Any purchase, password, credit card information, social security number, or other sensitive online data is encrypted. But there are still drawbacks to Confidential Data, especially relating to Web 3 applications. In general, encrypted data has to be stored somewhere, and many companies rely on third parties, to handle this data. All the sensitive data stored in one location makes it an easy target for hackers. Adding further drawbacks, Confidential Data within Web 3 makes each transfer publicly tied to an individual user. This means all on-chain activities and interactions still link sensitive data to a user’s public address. This is where the distinction between confidentiality and privacy becomes apparent.

Private Data

Privacy is a crucial pillar for blockchains to reach mass adoption. Confidential Data takes a significant step in this direction, especially when combined with the performance and affordability provided by Solana. However, there are still drawbacks and issues, especially regarding Web3 applications. Private Data helps to fill in the cracks that Confidential Data cannot. In an ideal world, when an individual wants to send sensitive information, their identity and the contents of their sensitive information remain private. With Private Data, anyone can send any information without worrying about being tied directly to a transfer. There is still one looming issue that persists even with the combination of Confidential and Private Data. Even if the contents of the transfer (Confidential Data) and the individuals involved (Private Data) are encrypted, the data is still at risk with current technology. What if there was a solution or tool that combined the benefits of both transfer types and eliminated the need for third-party applications?

Privacy’s Ultimate Combo

Our team at Arcium has worked hard to find a solution that enables confidential and private data without needing third-party applications. Ultimately, we have combined the power of Zero-Knowledge Proofs (ZKPs), Homomorphic Encryption (HE), and Multi-Party Computation (MPC) to develop a platform capable of combining all the advantages of each in the form of Multi-Party Computation eXecution Environments (MXEs). This platform provides a decentralized service that maintains unparalleled assurances in data processing, ensuring that data remains encrypted throughout its lifecycle. This type of data processing utilizes trustless collaboration to ensure that data remains encrypted while still allowing computations to be performed on the data, eliminating the need for third-party applications. So, any application or user building or activity that is actively involved in Web 3 can remain private, their data can remain confidential, and their identity and data will remain secure and safe from potential vulnerabilities. This is the final key to unlocking applications for various Web 2 industries in the form of: loans, healthcare, voting, human resources, etc.

A Bright Future

Are you excited to see what possibilities lie in store? We are, too. Follow us on X and join our Discord to stay updated on Arcium’s journey. We look forward to an exciting road ahead.